Following weak leads the Australian share market has pulled back from this week’s gains, dropping more than 1 per cent at noon. All sectors are in the red, led by losses in the energy and mining sectors.
The S&P/ASX 200 index has dropped 52 points and is 4,136. On the futures market the SPI is 47 points down.
Economic news
The latest data on Australia’s services sector has shown the sector was still weak at the end of 2011. The Australian Industry Group and Commonwealth Bank of Australia's (ASX:CBA) performance of services index increased 1.3 points in December to 49 points. The read still remains under 50 which indicates contraction.
Company news
Lynas Corporation Limited (ASX:LYC) says it has completed all requirements for the application to Malaysian regulatory authorities for a temporary licence for its Advanced Materials Plant in Malaysia. A decision on the application, which also includes a detailed waste management plan and safety case, is expected from the Malaysian Atomic Energy Licensing Board at the end of this month. Lynas Executive Director, Nicholas Curtis, told the Finance News Network at the end of last year he is confident the rare earths developer will ramp up production at the rare earths refinery in the first half of this year. Shares in Lynas Corporation are trading 4.04 per cent lower at $1.07.
Transpacific Industries Group Limited (ASX:TPI) founder and former executive chairman, Terry Peabody, has launched legal action against the company for more than $4.6 million. The waste management company told the Australian Securities Exchange today Mr Peabody yesterday commenced proceedings in the Supreme Court of Queensland. The action relates to the company’s institutional shortfall bookbuild conducted in October 2011 and Transpacific Industries says it intends to defend the proceedings vigorously. Transpacific Industries Group are trading steady at $0.80.
Best and worst performers
All sectors have pulled back: The sector with the smallest losses is Real Estate Investment Trusts losing 3 points to 808. Shares in Stockland have risen 0.44 per cent and trading at $3.395. Shares in Charter Hall Retail REIT are higher while shares in Dexus Property Group are steady.
The worst performing sector is Energy, dropping 221 points to 12,885. Shares in Karoon Gas Australia have fallen 3.1 per cent and trading at $4.69. Shares in Worleyparsons and Santos are also lower.
New Zealand
The NZSX50 is 13 points lower: Taking a look at the top four stocks by turnover, Telecom Corporation of New Zealand is at the top of the list with stock down 0.5 per cent to $1.99, followed by Chorus, Westpac and Fletcher Building.
Gold and the dollar
Gold is trading at $US1,611 an ounce.
The Australian dollar is buying $US1.0322.
